THE UK GOVERNMENT HAVE PUBLISHED THEIR PAPER ON THE NEW BETTING TAX RULES

The UK Government have published their paper on the new betting tax rules that will see overseas gambling operators pay the same rate of tax as their UK based competitors at 15%.

Under the new tax laws which will be announced in the governments March budget and then become law from the end of December 2014, companies such as bwin.party, Ladbrokes, Betfair and William Hill among others will be have to pay the new tax structure if they want to offer their services the UK customers.

At present those companies based overseas in Gibraltar, Malta and other regulated offshore operators who currently pay as low as 1% company tax will be charged at the 15% rate should they wish to continue servicing UK players the same as their UK based competitors.

“It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the government is taking decisive action to ensure this can no longer happen,” Economic Secretary to the Treasury Sajid Javid said.

“These reforms will ensure that remote-gambling operators who have UK customers make a fair contribution to the public finances.”

It is believed the new tax rate will help the government reap in more than £300 million in currently lost revenues.

The UK biggest shop and online gambling operator William Hill which would be hugely affected by the new tax has previously threatened to take their opposition to the European Union in breach of competition laws.

CALIFORNIA WILL NOT BE MOVING FORWARD WITH ANY ONLINE GAMBLING BILL

It is almost certain that California will not be moving forward with any online gambling bill this year following the usual in fighting between the Indian tribal casino owners and the horse racing industry on how to share the online gambling pie in the biggest state in the US.

The two online gaming bills that have been introduced this year in California look certain to fail as the current legislative session in the state ends on the 6thSeptember and neither bill has the support to move them forward.

Failure seems highly likely as all parties involved are a long way from agreeing on how to work together in making sure they all prosper from online gambling in California.

There is a bill that was drafted earlier in 2013 by 8 of the state’s main tribes called the “Internet Poker Consumer Protection Act of 2013.” That bill excludes racetracks from participating in online poker or gambling and is one of the major reasons why legislative advancement has failed to move forward this year.

California has long been seen as the one state that would make online gambling in the US well worthwhile with a population of 37 million, but players there will have to wait till next year before hopefully playing online.

Pennsylvania senate will not consider online gambling this year

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Tina Davis, the state representative that introduced a bill for online gambling for the state back in April of this year, looks like having the legislation halted till 2014 at the earliest after many law makers in the state want to see how the current states allowing online gambling fair.

Tina Pickaett who is the Leader of the House Committee on Gaming Oversight said, she wanted to wait and see how online gambling works out in the states where law has been passed already, both in Nevada, New Jersey & Delaware. Saying that she very much doubts any bill for online gambling will be heard this year.

Pennsylvania would be the largest state by far should it ever make online gambling legal with a population of over 12 million residents. The state already has a thriving land based gambling business, which is ranked number two in the country behind Nevada.

The state has two concerns before it will move with legalising online gambling, firstly that guidelines are in places for the protection of vulnerable people gambling and also that their current land based casinos are not adversely affected by any move to online gambling.

PENNSYLVANIA IS GOING TO INTRODUCE ONLINE GAMBLING BILL

The US and online gambling news keeps continuing its pace with the latest being the state of Pennsylvania where a bill legalizing online gambling could be introduced.

 

State Representative Tina Davis said on Thursday 7th March, that she could introduce the bill as early as Wednesday (13th March).  Davis said that the recent legislation in New Jersey is the reason why the state needs to get going on this, so not to miss out.

 

“We wanted to get the conversation going,” she said. “We’re working on some changes” to the bill. “I got a lot of feedback from the different stakeholders, including the casinos.”

 

Under the proposed bill from Davis, the state would receive a $10 million payment from license applications and a tax rate of 20%. With the bill requiring any applicant to have both slot machine and table-game licenses in the state to qualify for an online-gambling license, effectively only allowing operating casinos in Pennsylvania to apply and run online gambling there.

 

How the bill does is questionable, Bill Thomas, executive director for the Democrats on the House Gaming Oversight Committee said: “whether the bill gains traction depends on “whether there is enough appetite in the House to do it, we have a Republican majority in the House that has been mostly anti-gaming.”

 

Should the online gambling bill pass into law Pennsylvania would be the biggest state so far to legalize online gambling with a population of 12.7 million.

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JOE BARTON’S LATEST BILL TO CONGRESS THAT IF PASSED WOULD ALLOW FOR FEDERAL LEGISLATION FOR ALL STATES TO HAVE ONLINE POKER

Thursday the 11thJuly saw the introduction of Republican representative Joe Barton’s latest bill to Congress that if passed would allow for federal legislation for all states to have online poker, if wanted.

This is the second bill this year following on from New York Congressman Peter King’s called “the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013.”

How the bills differ is that King’s bill allows for all types of online gambling, where Joe Barton’s bill only allows for online poker.

Nevada, New Jersey and Delaware have legalized some kind of online gambling, and legislatures in other states are considering their options on moving forward with online gambling.

Barton’s legislation, called the Internet Poker Freedom Act, would only apply to poker and would allow states to opt in or out of the federal system.

“Poker is an all-American game. It’s a game that I learned as a teen and continue to play today. Just like millions of other players I enjoy the strategy and skill involved,” said Mr Barton. “I continue to be supportive of the Americans who play poker online. They deserve to have a legal, on-shore system that makes sure everyone is playing in an honest and fair structure.”

Morgan Stanley predicts that by 2020, online gambling in the U.S. will produce the same amount of revenue as Las Vegas and Atlantic City markets combined: $9.3 billion. But states cannot get there on their own. A more fluid market is needed to drive up pots and create a robust stream of tax revenue.

DELAWARE HAS TAKEN ITS TIME MOVING FORWARD WITH ONLINE GAMBLING

Delaware the smallest state that has legalized online gambling, this week announced its proposal for online gambling regulations within its borders.

Also the state with some 900,000 residents has said it wants to have live online gambling by the end of September. The online regulations that had some 27 pages in total are now open to view to the public after a long wait for them to be published. The process now will involve comments and thoughts from state residents on those regulations before making them law.

Delaware has taken its time moving forward with online gambling, indeed out of the three states to legalize online gambling, Nevada, New Jersey and Delaware, they were the first to do so.

A couple of interesting points out of the 27 page regulations were that Delaware has no “bad actor” clause, instead it has sweeping powers to determine whom is preferred and not. Also in its licensing section, the state can skip the majority of licensing process if the applicant already holds a license in another online gambling state, believing it will be more efficient.